Snapchat's parent company Snap Inc (NYSE: SNAP) shares surged more than 20% on Wednesday in pre-market trading after the company reported better-than-expected third-quarter financial results. The Social media company registered a 52% increase in revenue at $679 million in its third quarter. The strong Q3 financial results boosted by an increase in users and improved revenue outlook.
Earnings per share: $0.1 vs. -$0.5 expected
Revenue: $679 million vs. $555 million expected
The American social media company said its daily active users (DAUs) jumped to 249 million in Q3, versus 238 million in the prior quarter. While the company posted £153.39 million of net loss in the third quarter but that is a 12% improvement from last year’s numbers.
“The adoption of augmented reality is happening faster than we had previously anticipated, and we are working together as a team to execute on the many opportunities in front of us,” Snap CEO Evan Spiegel said. We're excited about the growth of our business in Q3 as we continue to make long-term investments in our future," he added.
$SNAP closed on Tuesday around $28. The stock hits a new all-time high to $35 almost 24% in after-hours trading following the strong earnings announcement.